By Michael V. Cusenza
From the beginning, City Councilwoman Joann Ariola (R-Ozone Park) supported Intro. 1001-B, legislation proposed by Councilwoman Lynn Schulman (D-Forest Hills) that would hold commercial landlords responsible for renting storefronts to unlicensed smoke shops.
On Monday, Schulman was joined by several officials to announce that the new law had taken effect. Now known as Local Law 107 of 2023, it prohibits owners of commercial spaces from knowingly leasing to unlicensed sellers of marijuana or tobacco products, imposing fines of up to $10,000 on landlords for violations.
As Ariola noted on Monday, the new law states: “The first time that an illicit cannabis or unlicensed tobacco product seller is found to be operating in leased commercial premises any relevant City agency could issue a warning to the owner of the premises. If an unlicensed seller is later found to be operating in the same commercial premises, the owner would be liable for civil penalties.”
Additionally, “This bill would also require the City to submit to the mayor and the council a quarterly report on enforcement relating to illicit cannabis or unlicensed tobacco product sellers.”
Under this new law, agencies that conduct inspections for unlicensed marijuana or tobacco sales and find such activity may provide written notice to the property owner requiring they ensure such unlicensed activity is ceased, serving as the basis of violation. Any subsequent inspection that finds continued violation would make the landlord subject to a $5,000 civil penalty at first, and a $10,000 penalty for each subsequent violation. The commencement of an eviction proceeding shall be considered an affirmative defense for a landlord.
“It’s time that we hold landlords and property owners accountable for knowingly providing storefronts to businesses that have a negative impact on their communities,” Ariola said. “Unlicensed smoke shops put their communities at risk by peddling unlicensed products, and damage the quality of life in the neighborhoods around them. In the interests of public safety, and to ensure that all New Yorkers can enjoy the quality of life that they deserve, those who knowingly support these smoke shops must be penalized.”
It is estimated that New York City is home to approximately 8,000 illegal, unlicensed smoke shops. Consequently, sales by illicit stores undermine the licensed recreational marijuana market, depriving New Yorkers of the tax revenues and community reinvestment funds generated from the 13 percent tax on legal sales. The products sold in unlawful stores are unregulated, and therefore can pose health risks to consumers.
“Slapping landlords with fines when their tenants are selling unlicensed cannabis and tobacco sends a strong message: keep your place clean or pay the price,” said Barbara McNamara, co-president of the Howard Beach Lindenwood Civic. “A lot of people, sadly, only understand dollar signs at the end of the day. So hitting them in their pockets like this can guarantee that they run a tight ship and don’t rent to people who might harm the community.”
Schulman, chairwoman of the Council Health Committee, called the new law “a game changer and adds another tool to the enforcement toolbox against these harmful businesses.”
